Financial Resources
Having sufficient financial resources to support your business may make the difference between the success and failure of your business.
The Western Regional Office can help you negotiate the financial challenges faced by start-up and expanding businesses. The SBDC does not provide financing. We work with banks and other lending organizations (both conventional and non-conventional sources) to assist in putting together financial projections, but the actual financing comes from outside sources. The SBDC can also assist with assembling financial statements, preparing loan applications and securing the best financing options for your business.
This financial resources listing has been compiled by the Western Massachusetts Regional SBDC. It is intended for general information only and is not comprehensive.
- Federal Programs
- State Programs
- Local Programs
- Western Massachusetts CDCs
- Non-Financial Resources
- Local Banks
- Other Sources of Funding
Federal Programs
New England Trade Adjustment Assistance Center
(NETAAC)
71 Faulkner Street
North Billerica, MA 01862
Tel: 978-663-9870
Email:
Contact: Lisa L. McHatton, Director
NETAAC helps Massachusetts manufacturers who are hurt by import competition by providing them with consulting services at reduced costs. This program is administered by the U.S. Department of Commerce. Under this program the federal government will pay up to seventy-five percent of the cost of projects, including (but not limited to): ISO 9000 certification and training; export assistance; market studies; sales organization
development or improvement; creative services for promotional literature; industrial engineering; plant layout and work-flow improvements; energy surveys; and development of cost systems.
U.S.
Department of Agriculture (USDA)
Rural
Development
451 West Street, Suite 2
Amherst, MA 01002-2999
Tel: 413-253-4300
Michael Rendulic, Acting State
Director
USDA
Farm Service Agency (FSA)
445 West Street
Amherst, MA 01002
Daniel Smiarowski, Acting State Executive Director
Tel: 413-253-4500
The U.S. Department of
Agriculture provides business financial
assistance through direct lending and loan
guarantee programs. Business applicants must be
located in rural areas. Agricultural loan
inquiries should be made to FSA; all other types
of business ventures should contact Rural
Development. Program delivery is through Service
Centers at multiple locations.
U.S. Small Business Administration (SBA)
Scibelli Enterprise Center
1 Federal Street
Springfield, MA 01105
Tel: 413-785-0484
Contact:
The SBA administers various programs that provide financial and management assistance to small businesses. To learn more about SBA's loans and grants, visit https://www.sba.gov/funding-programs/loans. SBA's most active programs include the following:
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7(a) Loan Guarantee Program.
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SBA Express. The SBA Express loan program is an expedited loan program where the SBA lenders uses mostly its own forms, documents and procedures and in exchange receives a lower SBA guaranty - 50%. Approvals under this program are provided within 36 hours of submission to SBA. Loan sizes are up to $350,000.
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504 Certified Development Company Program. Through this program the SBA provides financing to businesses through "certified development companies" (corporations established to contribute to the economic development of their community or region). Projects financed under this program generally include a loan from a private lender covering up to 50% of the project costs and a second loan from a certified development company (guaranteed by the SBA). This program enables growing businesses to secure long-term, fixed-rate financing for major fixed assets such as purchase and improvement of land, the construction or renovation of facilities, or the purchase of new or used machinery and equipment.
State Programs
Bay Colony Development Corporation
(BCDC)
1601 Trapelo Road, Suite 222
Waltham, MA 02451
Tel: 781-891-3594
Contact:
BCDC is one of the state's largest providers of Section 504 fixed asset financing. A non-profit corporation, BCDC works with banks and small to medium sized firms to provide 90% financing for the acquisition and/or expansion of real estate and equipment. Historically, projects have ranged in size between $400,000 and $5,000,000.
BDC Capital / New England
Certified
500 Edgewater Drive, Suite 555
Wakefield, MA 01880
Tel: 781-928-1100
Contact:
Carol C. Brennan, Director of Business
Development
BDC Capital/New England Certified is a private company established in 1953 with the support of more than 50 local banks and financial institutions to provide nontraditional growth capital to Massachusetts businesses. Their Western Massachusetts office is located in West Springfield. BDC Capital/New England Certified provides loans to businesses in Massachusetts that are unable to obtain financing from conventional lenders. It also provides loans to companies that need supplemental financing to make conventional debt work. These loans may be used for working capital purposes, the acquisition of real estate, machinery or equipment, mergers and acquisitions, or debt restructuring. The loans range in size from $50,000 to $1 million and can be structured with longer loan terms and more aggressive collateral advance rates than conventional bank loans.
BDC Capital/New England Certified is also a SBA "premiere certified lender" for 7A guarantees, in the event that the borrower's collateral is insufficient to support the desired amount of financing.
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BDC Capital provides community loans to companies that are minority or women-owned, not-for-profit, employ a predominantly minority workforce, or demonstrate a direct positive impact on economically disadvantaged areas. The loans may be used for equipment, real estate, working capital or any other reasonable business or community development purpose.
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New England Certified Development Corporation, an affiliate of BDC Capital, offers the popular SBA 504 program to businesses for owner-occupied property. New England Certified consistently receives the highest rating from the the U.S. Small Business Administration. SBA 504 loans, for projects ranging in size from $500,000 and up, may be used for:
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The purchase of land and buildings
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New construction, renovation and leasehold improvements
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Acquisition of machinery and equipment
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Borrowers get low-cost fixed rates with longer terms and low down payments. With an SBA 504 loan, a borrower obtains a first mortgage loan for usually 50% of the project from a bank. There is no maximum dollar amount. New England Certified then provides a secondary loan (called a debenture) for the next 40%. Certain manufacturing entities are eligible for up to a $4 million debenture. All other industries are capped at $2 million. Up to 90% financing means the borrower typically provides only 10% equity for the project. Loan terms may extend as long as 20 years, and low fixed interest rates (fixed for 20 years for real estate; 10 years for equipment) are available on up to 40% of the project.
Community Economic Development Assistance Corporation
(CEDAC)
One Center Plaza, Suite 350
Boston, MA 02108
Tel: 617-727-5944
Email:
Contact: Roger Herzog, Executive Director
CEDAC is a quasi-public corporation established to promote the development of community-based, non-profit development organizations in Massachusetts to benefit low and moderate-income neighborhoods and communities. CEDAC provides professional expertise and equity capital in the form of traditional loans for the predevelopment costs of real estate projects.
Granite
State Development Corporation (GSDC)
PO Box 15
Granville, MA 01034
Tel: 413-271-0099
Contact: Tracey
Gaylord
Granite State Economic Development Corporation (GSDC) is a non-profit lender authorized to process and service U.S. Small Business Administration loans utilizing the 504 lending program. The GSDC is the most active certified development company in New England and provides financing in the states of Maine, Massachusetts, New Hampshire and Vermont. GSDC's mission is to assist small businesses to expand and grow, thereby helping the New England economy. Since 1990, in cooperation with valued bank lending partners, they have participated in more than 4,000 transactions for over $1.5 billion, helping create over 20,000 jobs in New England.
Massachusetts Capital Resource Company (MCRC)
420 Boylston Street #5
Boston, MA 02116
Tel: 617-536-3900
Contact:
MCRC was formed by the Massachusetts-based life insurance industry in 1977 in response to a study of the region's economy produced for the Massachusetts Task Force for Economic Development. MCRC is a private company that promotes economic development by providing growth capital to established local businesses throughout the Commonwealth. When formed in 1977, the concept of a private company acting as a geographically focused investment fund was new and unproven. Over the past twenty years, our unique approach to community-based investing has produced outstanding results. Over this period, MCRC has invested approximately $400 million in 219 companies located in 98 communities resulting in the creation of over 15,000 jobs.
Massachusetts Department of Housing and Community Development (MDHCD)
100 Cambridge Street, Room 300
Boston, MA 02114
Tel: 617-573-1100
Contact: Aaron Gornstein, Undersecretary
MDHCD administers programs that provide economic assistance to businesses engaged in economic development projects.
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Massachusetts Community Capital Fund (MCCF)
MCCF provides debt financing to for-profit and non-profit businesses that provide significant employment opportunities in eligible Massachusetts municipalities. Municipalities apply for MCCF funds on behalf of the local business or non-profit. If approved, MDHCD awards a grant to the community that, in turn, lends funds to the borrower. MCCF loan rates and terms are flexible and based on the needs of each borrower. The three major criteria for funding are: 1) financial need, 2) job creation/retention for low and moderate-income persons, and 3) credit-worthiness of the borrower. MCCF funds up to one-third of a total capital project. Loan size ranges from $100,000-$490,000. Financing can be provided for purchase of capital equipment, working capital, acquisition of real estate, new construction or rehabilitation, and in some cases refinancing. -
Section 108 Loan Program
This program is designed to promote infrastructure development and business expansion. Under this program a municipality must apply for and administer the loan to a business borrower. The State guarantees the loan while actual funding is provided through the sale of bonds by the federal Department of Housing and Urban Development (HUD). The State will guarantee up to 40% of the total project costs with maximum guarantees ranging from $500,000 to $5,000,000.
Massachusetts Growth Capital Corporation (MGCC)
529 Main Street
Schrafft Center,
Suite 1M10
Charlestown, MA 02129
Tel:
617-523-6262
Contact:
Charles
Grigsby, President
The mission of the
Massachusetts Growth Capital Corporation is to
create and preserve jobs at small businesses and to
promote economic development. MGCC
provides a centralized resource at the state
level that offers working capital, loan
guarantees, and targeted technical assistance to
solve specific financial and operational
problems. MGCC will provide 50% of the cost of
such assistance while the company being assisted
will invest the other 50%.
MGCC
will build on the work of its predecessor
agencies by working with traditional financial
institutions to make "un-bankable" loans
bankable, by working with community development corporations and
other non-profits to provide financing for job-producing projects,
and by assisting a wide range of small businesses to find the growth
capital they require. MGCC will seek to assist manufacturers that
are expanding, other growth sectors and small businesses in older
Gateway Cities.
MassVentures
1075 Main Street, Suite 100
Waltham MA 02451
Tel: 617-723-4920
Contact:
MassVentures was formed in 1978 as a quasi-public corporation by the Commonwealth of Massachusetts to address the capital gap for start-up companies and to encourage the growth of early-stage technology firms. MassVentures is a venture capital firm focused on fueling the Massachusetts innovation economy by funding early-stage, high-growth Massachusetts startups as they move from concept to commercialization. MassVentures focuses on Series A investments and considers occasional and opportunistic seed rounds. It provides capital for first-time CEOs and/or founders, and considers industry segments not adequately served by the venture community.
160 Federal Street
Boston, MA 02110
Tel: 617-330-2000
Contact: Robert Culver, President/CEO
1350 Main Street, Suite 1110
Springfield, MA 01103
Tel: 413-731-8848
MassDevelopment functions as the Commonwealth's financing tool for building businesses and communities. It is able to fortify Massachusetts' diverse industries through the use of predevelopment assistance funds, tax-exempt and taxable bonds, tax-exempt lease/purchase financing programs, emerging technology programs, export finance funds and direct loan/guaranty programs.
Local Programs
Agawam Small Business Assistance Center
City Hall, 36 Main Street
Agawam, MA 01001
Tel: 413-786-0172
Contact: Dee Emery-Ferrero, Chairperson
The Center promotes the growth, development and retention of businesses in Agawam and the surrounding communities. Funded by donations from area businesses and organizations, and staffed by volunteers, the Center offers professional counseling, workshops and other support services to area entrepreneurs who want to start or improve their businesses.
Common Capital Inc.
1780
Main Street
Springfield, MA 01103
Tel: 413-233-1680
Contact: Kimberly Gaughan, Loan
Fund Manager
Common Capital is a
community financing resource for businesses,
community projects and nonprofit organizations
in Western Massachusetts.
Holyoke Economic Development and
Industrial Corporation (HEDIC)
City Hall Annex, Room 406
20 Korean Veterans Plaza
Holyoke, MA 01040
Tel: 413-322-5655
Email:
oped@holyoke.org
The Holyoke Economic Development and Industrial Corporation (HEDIC) administers the Holyoke Industrial Development Loan Program to assist new and expanding companies meet their capital needs.
Other Sources of Funding
Long River Ventures
Amherst, MA 01002
Tel: 413-587-2159
Contact:
Long River Ventures is an early stage venture capital firm that typically invests in a mix of seed, start-up, and more advanced early stage companies. They primarily invest in information technology and healthcare, as well as other products and services enhanced by technology and innovation including business services, environmental technologies and consumer product and services.
Non-Financial Resources
Massachusetts Office of Business Development (MOBD)
10 Park Plaza, Suite 3730
Boston, MA02116
Tel: 617-973-8600
Contact: James Ermilio,
Executive Director
MOBD Western Office
1350 Main Street,
Suite 1110
Springfield, MA 01103
Tel: 413-733-5357
Contact:
Michael L. Vedovelli, Regional Director
MOBD's mission is to assist in the creation and preservation of jobs in Massachusetts. They help businesses currently located in Massachusetts, as well as those outside the state that are interested in expanding, relocating, or simply exploring a range of business opportunities. MOBD serves as a single point of entry for businesses wishing information on state resources.
Service Corps of Retired Executives (SCORE)
Scibelli
Enterprise Center
1 Federal Street, Building 101
Springfield, MA 01105-1222
Tel: 413-785-0314
395 Main Street,
PO Box 790
Greenfield, MA 01302
Tel: 413-773-5463
SCORE, affiliated with and sponsored by the U.S. Small Business Administration, is an organization of retired business and professional executives well versed in all phases of manufacturing, finance, retail, etc. who are available for consultation at no charge.
Western MA Community Development Corporations (CDCs)
324 Wells Street
Greenfield, MA 01301
Tel: 413-774-7204
Contact:
John Waite, Executive Director
Franklin County CDC works with local government and area businesses to sponsor community development, business assistance, and housing programs that expand opportunities for low and moderate income residents throughout the region. The CDC also administers a variety of business loan programs.
387 Main Road
P.O. Box 17
Chesterfield, MA 01012
Tel: 413-296-4536
Email:
Contact: Dave Christopolis, Executive Director
The Hilltown CDC seeks to improve the economic self-sufficiency of the hilltowns by increasing local employment opportunities and providing support services for hilltown residents. Business support programs include individualized business consulting, entrepreneurial training, business plan development and loan packaging. Towns served are Ashfield, Chester, Chesterfield, Cummington, Goshen, Huntington, Middlefield, Plainfield, Westhampton, Williamsburg and Worthington.
401 Main Street
Holyoke, MA 01040
Tel: 413-533-9442
Contact: Carlos Gonzalez, CEO/President
Nueva Esperanza sponsors community development, business assistance, and housing programs that expand opportunities for low and moderate-income residents in Holyoke.
Pittsfield Economic Revitalization Corporation
(PERC)
City Hall, Room 205, 70 Allen
Street
Pittsfield, MA 01201
Tel:
413-499-9371
Contact: Ann
W. Dobrowolski, Community Development
Specialist
Business assistance includes administration of the following business assistance programs: CDBG Small Business Loan Program, Economic Development Loan Fund, CDBG Technical Assistance Grants and State Small Business Technical Assistance Grants.
Quaboag
Valley Community Development Corporation &
Business Assistance Corporation
23 West Main Street
Ware, MA 01082
Tel: 413-967-3001
Contact: Susan
S. Rutherford, Executive Director
The CDC works to provide a wide range of programs and services to enhance the economic climate of the Quaboag Valley region. Its objectives include loans to area businesses that are micro-entrepreneurs or intend to create jobs. The CDC also provides technical assistance and training to small businesses.
Valley Community Development Corporation
30 Market Street
Northampton, MA 01060
Tel: 413-586-5855
Email:
info@valleycdc.com
Contact: Joanne Campbell, Executive
Director or
Gene Talsky, Director, Small Business
Development
The Valley CDC strives to improve the quality of life for all residents in its service area.
Local Banks
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Berkshire
Bank
31 Court Street, Westfield MA 01085
413-564-6230 -
Easthampton Savings Bank
36 Main Street, Easthampton MA 01027
413-527-4111 -
Florence Savings Bank
85 Main Street, Florence MA 01060
413-586-1300 -
Greenfield Co-operative Bank
63 Federal Street, Greenfield MA 01301
413-772-0293 -
Greenfield Savings Bank
400 Main Street, Greenfield MA 01301
413-774-3191 -
Monson Savings Bank
146 Main Street, Monson MA 01057
413-267-4646 -
PeoplesBank
314 High Street, Holyoke MA 01040
413-538-9500 - People's
United Bank
1391 Main Street, Springfield, MA 01103
413-781-2265 -
TD Bank
1441 Main Street, Springfield MA 01103
413-748-8231 -
United Bank
95 Elm Street, West Springfield MA 01090
413-787-1700 -
Westfield
Bank
206 Park Street, West Springfield MA 01089
413-568-1911
For additional information, please visit the following links:
Checklist for First Business Advisory Session | Do You Have What It Takes to Succeed in Business? | Preventure Considerations | Develop a Personal Budget | Guidelines for a Business Plan | Business Plan/Financing Proposal | Financial Resources | Business Obligations | How to Convince a Banker | Marketing Plan Outline | Frequently Asked Questions | SBDC Request for Counseling